If you are passionate about creating online businesses, it is very likely that you have heard of Stripe or Stripe Atlas as it is known worldwide, it is a good and legal option that offers users the creation of companies in the United States with a bank account. of the company Stripe.
Great advantage
These types of companies allow digital business entrepreneurs to easily create companies within the US.
In exchange, they can have a bank account that will be fully operational and thanks to the Stripe payment gateway they will be able to make online payments on their website.
The procedure can be done for a total cost of only $500.
Initially, this service was branded as revolutionary to the United States, although it is not so bad if we compare it with the recent creation of companies in Estonia.
After all, this type of company is an online payment gateway and is the direct competition for the big giants in this market such as Paypal.
The Stripe program has advantages and disadvantages that we will talk about later.
There are many digital nomads and online entrepreneurs who want to establish a company in the United States with all the tax advantages that this can offer.
How Stripe Atlas works
Stripe is a recent PayPal-style payment system on the market, through which you can connect your website or e-commerce with a bank account to a Stripe account.
This payment method is intended to facilitate payments on our website.
You will be able to charge for your services or products on your own web page without the need to use other payment gateways such as PayPal.
The payment platform is present in more than 20 countries around the world and works with 135 different currencies.
Global company
Therefore, we can say that this company has become global and that it is focused on a new reality of electronic commerce, which will not take long to reach Europe.
Advantages of Stripe Atlas
The advantages of Stripe are the following:
- Advantages of Stripe
- We can start a company on the internet from anywhere in the world. We can open an account at Silicon Valley Bank. Stripe Atlas offers us tax advice. We can work with 135 currencies from different countries. Integrated payment on our own website. Security. Very low commissions.
- Disadvantages Stripe Atlas
- The disadvantages of Stripe Atlas are the following:
- Drawbacks of Stripe
- The user has to pay on our company’s own website and this can sometimes generate some mistrust on the part of the user.
Why Delaware?
I’ll tell you why, although it is true that there are other more interesting offshore companies.
Currently, we can say of the Stripe Atlas, it is the only solution that offers a single possible type of incorporation and that also works as a company in the United States, without having to move there.
Currently, you can only open a company called a C-Corporation and it will have its official headquarters in the state of Delaware.
The Delaware choice is correct, since a state within the United States, in which this type of Stripes Atlas company can be registered, has its reason for being.
This state is a tax haven within the US and a regular place where more than sixty percent of the companies that are part of the well-known Fortune 500 are located for tax purposes.
Why?
This is thanks to the benefits obtained with the company, that is, if legal benefits have been obtained, in addition to the great history of the State on Business Law and in its specialized Court and known as the Court of Chancery.
Because it has a long legal tradition, the founders and creators of companies have found in this place with greater legal support.
For this reason, Delaware is a state within the US highly valued by digital nomads, startups, people who want to find a 100% digital company and have a presence in the country without having to reside there.
In this state we can, for example, make the company’s workers become investors in the future and we can also get investors from other points that do not have to be located within the state.
Keep in mind that this framework has a high price and the fees of lawyers and legal advisors in this state are very expensive.
Competitors
Delaware also has other national competitors, notably the states of Wyoming and the state of New Mexico.
In Wyoming we can find lower costs and greater flexibility in terms of anonymity.
At the federal level, Wyoming charges less taxes, as far as companies are concerned, than Delaware, for example.
But, this can only be applied to companies that want to make sales or business in this state and does not apply to international companies that sell their services online.
You should keep in mind that there is a tax, called a franchise fee, in this state, but it does not affect small businesses or digital nomads.
Minimum tax rate
In Wyoming you can save money on your annual costs when compared to other states.
The minimum tax rate is from $175.
The state of Wyoming is better than Delaware when it comes to taxes paid per year. While in the state of Wyoming they are around $50, in the state of Delaware we find $300 per year.
Another important piece of information is that Wyoming does not charge royalties, in addition, no certificate is needed indicating that it has participated and it is also necessary to take into account minimum costs/fees for tax advisors who are registered in this state.
Finally, most entrepreneurs prefer to register/create a company in the state of Wyoming at first. Then there are many businessmen who move to Delaware fiscally speaking.
Although, Delaware has a very particular advantage that makes it a single state within the country that can offer you to pay your company taxes as long as you do not hire employees, do not have a physical place as an office and do not register national income within the US .
Why is the C-Corporation better and not another type of company?
Whether you finally opt for Delaware or Wyoming, you must bear in mind that when opening your Stripe Atlas company, the legal form is this and not another.
The C-Corporation is very similar to the LLC, and it is a type of company that on some occasions may exempt you from some types of taxes.
We could compare this type of company with the Spanish SL. Although, LLCs are fairly fiscally honest.
Both types of company have unique and very well differentiated characteristics:
Liability is limited. In legal terms, the LLC will never be considered a company, but its legal form will be similar to an association. In the case of the Spanish SL, it is considered a company at a tax legal level.
The LLC is a fiscally transparent company:
That will never be recorded at the business level. She is honest about taxes. You must bear in mind that its shareholders/partners and investors will always be subject to personal income tax in their place of residence.
For the eternal travelers and the subjects that reside in other countries where taxes or land tax are not paid, this legal figure offers us a great alternative to avoid paying taxes, legally speaking. It only applies if there is no national income within the US.
Given that the peculiarities of this type of company and its great difficulty in being able to open some type of bank account in the United States, since LLCs are classified for non-residents fiscally speaking, it only makes sense to open this type of company and manage it with other types of accounts. which can be private, other types of payment such as cryptocurrencies or bitcoin, and even the most popular payment gateways such as PayPal and Stripe.
C-Corporation
But, for now, let’s go to the type of corporation that interests us and which is included with Stripes Atlas, which is the C-Corporation.
In this type of corporation, so to speak, if it is possible we can create or open the bank account on our own.
Let us remember that US corporations have always been subject to very strict regulations and that they have much fewer advantages than LLC companies.
You must pay your taxes on sales made worldwide within the US unless you do not have office employees or national income.
Important noteMore important information
If you have income in the United States with a national company, you must pay all taxes there.
If your location is within the state of Delaware, only certain US federal taxes will apply.
Steps to follow to open a C-Corporation
Next, we will indicate the steps to follow in order to legally open your C-Corporation in the United States.
Characteristics of a C Corporation
This model or type of company is the most common in the US and for good reason.
It offers great unlimited growth through the sale of shares, this means that the founder will be able to attract new investors with high potential.
In addition, there is no limit on the number of shareholders for this entity.
The characteristics that we can take into account about the C-Corporation are the following:
ResponsibilityCredibilityGrowthShareholder limitTax advantages
Liability is limited. This is for directors, officers, lenders and employees only.
We grow unlimited.
There is no limit of shareholders. But once the company has $10 million in assets and about 500 shareholders, it is required to register as an SEC under the Securities Exchange Act of 1934.
It has certain tax advantages that we have mentioned before.
Requirements to open C-Corporation
The requirements to be able to open a C-Corporation are the following:
Have a valid identity document (passport). Complete the forms of the Department of Internal Revenue (IRS). Have the pass-throught entities that is a special tax status. Pay federal fees, which is around $500.
Once we have met these requirements we already have our company legally constituted!
Documents to open a C Corporation
The documents that you must take into account to open a C-Corporation are the following:
Statutes of Incorporation or Certificate of Incorporation depending on the State. Valid passport. IRS Form 2553 and 1120.
In addition, to pay the corresponding federal fees that amount to a total of 500 dollars.
Structure of a C-Corporation
Shareholder Ownership
The structure of this type of company is one of shareholder ownership.
Among them choose the directors of the corporation.
These directors will establish the strategies that must be followed within the corporation and will be responsible for its administration.
The officers and managers hired by these directors will be responsible for carrying out the vision of day-to-day tasks.
Expenses when opening a C Corporation
As we have indicated before, the total cost of starting a C-Corporation is usually around 500 dollars (or a little more).
The expenses of creating the company include:
The Authorized Agent in Delaware costs about 100 dollars per year. Tax preparation costs $250 per year. Filing taxes in Delaware which costs $225 per year. Bank account.
Taxes and capital that I must pay with my C-Corporation
Next, we want to show you the type of taxes that you must pay with your C-Corporation.
Minimum share capital1 dollarCorporate taxesBetween 15% – 40%Resident Director/ShareholderNot necessary
Minimum share capital
The minimum share capital is 1 dollar.
Corporation tax
Federal corporate taxes for the US range between 15 and 39%.
15% of the taxes will be up to a turnover of 50,000 dollars and it can be quite attractive for people who have smaller projects and it can become an interesting alternative if the advantages offered by Stripe Atlas are important.
In the United States, it is not considered a country with low tax pressure, so generally you will not have problems when it comes to recognizing your residence.
Although, you should be careful to see if there are CFC Rules in your country of residence.
In European countries, earnings can be taxed in the United States as long as some type of asset has been established there.
If profits are transferred to third countries, a part of the profits before taxes may be transferred.
Withholding tax
In any case, it is important to take into account the high withholding tax of 30% in the distribution of dividends of this type of company.
Resident Director/Shareholder required
No, in this case it is not necessary, contrary to what happens with the figure of the Agent.
Keep in mind
Yes, federal laws are very demanding with this type of company and a registered address must be maintained with the Secretary of State in each state where we want to do business.
The person or company located at that address, known as the Registered Agent, must remain available during all business hours.
A registered agent will be required to receive and send important legal documents and state correspondence on behalf of that business.
Can a C-Corp own an LLC?
The C-Corp has its own legal identity (always separate from the figure of its founder), a C-Corp can own an LLC.
Can a C-Corp own an S-Corp?
An S-Corp can own a C-Corp. But, in this case, you can’t own an S-Corp. This is because the structure of both legal figures is incompatible.
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